As previously communicated, Staffan Bohman has announced that he will not be available for re-election at the Annual General Meeting 2024. The Nomination Committee proposes that Torbjörn Lööf is elected as new Chairman of the Board at the Annual General Meeting of AB Electrolux on March, 27, 2024.
Torbjörn Lööf is Board member of Husqvarna AB, Essity Aktiebolag, AB Blåkläder and Mercer International Inc. During the period 1989-2020, Torbjörn Lööf has held several senior management positions within the IKEA-sphere. Among other positions, he has been CEO of Inter IKEA Holding, Inter IKEA Systems and IKEA of Sweden. He has also held senior management positions at IKEA in Sweden and Italy and been Chairman and Board member of numerous IKEA-companies.
Torbjörn Lööf is born 1965 and is a Swedish citizen.
Torbjörn Lööf has a solid background within the IKEA-sphere with extensive experience of working with a strong brand, global supply chains and strategic ability to develop and successfully adapt the business in a changing global environment as well as experience as Board member of public companies. It is the opinion of the Nomination Committee that this makes him very well suited as Chairman of AB Electrolux to lead the company’s ongoing work to sharpen its strategic focus to grow profitably in selected home appliance categories in the mid- and premium segments and enable return to good results and profitability levels and achieving the company’s financial targets.
The Nomination Committee’s complete proposal will be presented in the notice to the Annual General Meeting 2024
Category Archives: Financial
EU antitrust approves Whirlpool-Arçelik merger
The European Antitrust has approved the merger of Whirlpool ‘s activities in Europe with those of Arçelik into Beko Europe . European Commission officials believe that the union of the former Whirlpool EMEA brands with Turkish ones does not lead to dominant positions.
The start of the operation announced in January 2023, however, must wait until the spring of 2024 when the English Antitrust Authority will complete its in-depth investigation having detected in an initial analysis the risk of a significant reduction in competition, especially in some areas of the market .
Whirlpool confident of a ‘green light’ also from London
Hailing the EU Commission’s decision, Whirlpool said it was confident that the CMA, at the end of the investigation, would also agree with the assessments expressed at the European level. However, the operation will be carried out, at worst, giving up access to the English market for some brandsThe Whirlpool-Arçelik operation in brief
Subject of the agreement: The agreement includes Whirlpool’s 38 European subsidiaries and 9 production sites in Italy, Poland, Slovakia and the United Kingdom, as well as Arçelik’s 2 production plants in Romania and its 25 European subsidiaries. Together, this will result in a production capacity of approximately 24 million white products per year.
Contractors . Shareholders of the new company are Whirlpool Emea Holdings LLC and Ardutch, a wholly owned subsidiary of Arçelik, a Dutch holding company through which Arçelik controls its activities in Europe. The deal will see both Ardutch and Whirlpool transfer their European subsidiaries to new Chinese company Beko Europe.
Subdivision of shares. After these transfers, it is expected that 75% of the new company will be allocated to Ardutch BV and 25% to Whirlpool. The final post-closing ownership ratio will be determined taking into account the parties’ respective 2022 EBITDA, net asset values, net debt and net working capital.
Arçelik profit
Arçelik has published excellent data relating to the third quarter of 2023. The Turkish financial site Borsatek reports a net profit of 1 billion Turkish liras (34 million euros): +198% compared to the third quarter of 2022 (an annual inflation of 65% must be considered ). Ebitda grew by 120% to 6.4 billion Turkish liras.
Consolidated revenues increased 70% year-on-year in line with forecasts, to TL 58.2 billion (nearly 2 billion euros).
Despite persistently weak demand conditions in international markets due to the difficult macro and political environment, revenue growth was supported by price increases and strong sales growth in Turkey.
Analysts welcome with satisfaction the results of the group which mainly operates under the Beko brand,
İş Investment has increased the target price for 12 months from 202 TL to 230 TL (currently it is 152 TL) as the company’s third quarter data have met expectations with strong operating profitability and strong net profit growth.
The company revised its revenue growth expectations in 2023 from 60% to 75% for its Turkish operations while remaining pessimistic for its international operations which it expects to contract in foreign currency terms by 4% during 2023.
Glen Dimplex Heating & Ventilation (GDHV) and RKW Ltd announce agreement transfer of Redring and Burco water heating brand
Glen Dimplex Heating & Ventilation, a leader in electrical HVAC solutions, and RKW, a leading European distributor and manufacturer of domestic appliances, are pleased to announce an agreement that will see the transfer of the renowned water heating brands, Redring and Burco.
This agreement aligns to both company’s strategies with GDHV’s ongoing commitment to focussing on their portfolio of brands and technologies in the electric heating and ventilation categories, and RKW’s continued expansion plan into new product categories that complement core operations.
Ian Stuhldreer, Interim Commercial Director for GDHV says “We believe that this transition will enable new opportunities for growth in GDHV’s core categories, and we are confident that under RKW’s stewardship Burco and Redring will continue to evolve while maintaining the high standards of quality and innovation that have become synonymous with these brands. I would like to take this opportunity to express my sincere gratitude to our customers for supporting these brands whilst they were part of the GDHV family.”
For RKW, the agreement comes at an exciting time as the business continues to grow.
Rob Sutton Managing Director of RKW says “We are delighted to welcome Redring and Burco to RKW’s stable of leading brands. We feel privileged to be taking over recognised leading brands with real heritage in their respective markets.”
“RKW has a talented team with a proven track record of brand building. Our team will ensure the high service levels established by GDHV are maintained as we look to grow the brands and product ranges. We look forward to working with customers who have loyally supported Redring and Burco in recent years.”
Please note that Glen Dimplex Ireland have a distribution agreement in place with RKW to continue to sell product on the Island of Ireland.
Mauro Correia, new CEO of Teka Appliances
The Board of Directors of Grupo Teka Industrial, SA, chaired by Arturo Baldasano, has appointed Mauro Correia as the new CEO of Teka Electrical Appliances, one of the three business units of Teka Industrial, SA, together with Thielmann (containers) and Strohm ( bathroom).
Mauro Correia, until now the group’s
president of international markets, joined Teka in 2016 and has 25 years of professional experience in different industries and top-level companies such as Walmart, Renault or BSH. He is an Electronic Engineer from the Pontifícia Universidade Católica de São Paulo and trained in Strategic Business Management at the Fundação Dom Cabral. He has held different positions of responsibility, in commercial areas, marketing, strategy, quality, R&D, and production, also participating in the development of the group’s current strategy. Correia thanked the Council for its trust in him and expressed “His commitment to the project and his conviction in ensuring that the company achieves its objectives and consolidates the achievements achieved in recent years.”
Mauro Correia succeeds Dr. Stefan Hoetzl, who has reported his voluntary resignation as of November 1 “to take on a new professional challenge in an international company based outside of Spain . “
For its part, the Council has reported that Correia’s appointment is an “organic transition that ensures the continuity of the project designed by the current management team. And it demonstrates the resilient evolution of Teka Electrical Appliances, which has increased its operational result in the last 5 years in a very positive way, managing to achieve a result in 2022 similar to the good year 2021 and with a forecast for 2023 close to the previous two years. , in unfavorable market conditions.”
Marks Electric Group
Marks Electric Group, an online electrical retailer headquartered in Leicester, has issued a report for the six months ending on September 30, 2023.
In the first half of the company’s financial year, revenue surged by 24.8% to reach £53.9m, up from £43.1m in HY22 as the firm processed over 7,000 installation orders in the first half, a substantial 180% increase from the previous year, and delivered more than 11,000 freestanding connection services, marking a 120% rise from the prior year
Arçelik-Whirlpool Antitrust continues the investigation until March 2024
The Competition and Market Authority has decided to move to phase 2 of the authorization process for the merger between the European operations of Arçelik and Whirlpool .
The CMA has officially announced the launch of an in-depth analysis which will end on 26 March 2024 to assess whether the project could create a “substantial reduction of competition in any market within the United Kingdom”.
The CMA has appointed a commission of external experts (lawyers, former merchant bankers and researchers). The start of the operation announced at the beginning of the year has therefore been moved to at least mid-2024.
The attention of the top management of the two companies as well as of governments, unions and operators therefore shifts to the European Antitrust which should make a decision by 23 Octobe
LG Releases Preliminary Earnings for Third-Quarter 2023
LG reported consolidated revenues of KRW 20.7 trillion and operating profit of KRW 996.7 billion in the third quarter of 2023, both the second highest third-quarter figures in the company’s history.
Driven by the major business of home appliances as well as vehicle solutions, LG’s future growth engine, the company accelerated the qualitative growth of its business despite the economic slowdown and prolonged decline in demand. Operating profit increased more than 30 percent compared to the same period last year as well as the second quarter of 2023.Driven by the major business of home appliances as well as vehicle solutions, LG’s future growth engine, the company accelerated the qualitative growth of its business despite the economic slowdown and prolonged decline in demand. Operating profit increased more than 30 percent compared to the same period last year as well as the second quarter of 2023The LG Home Appliance & Air Solution Company has seen significant growth in the B2B area with its HVAC solutions. The company aims to further expand its air conditioning business with heat pumps and ESS in response to the growing demand for eco-friendly and high-efficiency products in North America and Europe. And, launched in the third quarter, LG ThinQ UP 2.0 – a smart home innovation that combines home appliances and subscription services – has already received positive responses from customers and is leading change in the home appliance paradigm.
Electrolux divests the facility in Memphis
Electrolux Group will divest its manufacturing facility in Memphis, Tennessee, USA to a US-based investment company for a cash consideration of 61 million dollar. The agreed divestment follows a previous agreement with another buyer which was not completed.
The agreement includes a due diligence period before closing of the transaction, during which the buyer can terminate the contract. The approximate gain of 50 million dollar from the divestment will be recorded as a non-recurring item, positively impacting the operating income in business area North America, in connection with closing of the transaction.
According ti Electrolux, closing and the positive cash flow impact are expected to occur during the fourth quarter of 2023. The Group’s production in Memphis stopped on June 30, 2022, and the operations have been transferred to the new facility in Springfield, Tennessee
BSH UK PROFITS
BSH UK experienced a huge boost to its profits in the last financial year in spite of a decrease in its overall turnover figure.
In its 2022 accounts, just filed with Companies House, the appliance giant revealed that pre-tax profits were up by over 26% on the previous year to £30.2m.
This increase in profit is despite a slight fall in turnover to £811m, roughly 4.4% lower than the previous year.
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